How China Links in Nairobi-Mombasa Expressway Has Derailed Proposed Project

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the intrigues that led to the derailment of the Nairobi-Mombasa Expressway. We also cover a report on Kenyans’ investment in MMFs. 

Situation Awareness: The Energy and Petroleum Regulatory Authority (EPRA) has reduced the price of Super Petrol and Kerosene by Ksh1 in the latest review. As a result, Super Petrol will retail at Ksh185.31 per litre while Kerosene retails at Ksh155.58 per litre in Nairobi. In the price list released on Wednesday, August 14, EPRA maintained the prices of Diesel at Ksh171.58 per litre. Read more.

How Chinese Links in Nairobi-Mombasa Expressway Derailed Deal

The derailment of the proposed Nairobi-Mombasa Expressway has been attributed to the China-US rivalry.

As reported in the Business Daily, US-based financiers in the deal were uneasy with Chinese links in Mota Engil (a Portuguese firm), which was a financial partner in the deal.

Mota-Engil is owned 40% by the Mota family and 32.41% by China Communications Construction Company (CCCC), which is the parent company of China Road and Bridge Corporation—the builder of the Standard Gauge Railway.

Due to the rivalry, Mota Engil withdrew from the deal. Notably, the withdrawal of the Portuguese firm was one of the factors that led the Treasury to express reservations over the project.

Following the pulling out of the financial partner, Treasury felt that Everstrong Capital (a US firm) did not have enough financial power to undertake the Ksh465 billion project.

The Expressway is a project to be undertaken under the model where the investors will use their money to undertake the project and recoup their investment through toll charges.

Meanwhile, Everstrong Capital has insisted that the project was not rejected, adding that they were still under review, with various issues raised by Treasury being addressed.

‍Police Question KUSCCO Staff Over Ksh13 Billion Scandal

Police have questioned at least 10 employees of the Kenya Union of Savings and Credit Co-operatives Ltd (KUSCCO) over alleged financial misappropriation. The employees recorded statements at the Capitol Hill Police Station before being released.

As reported by the People Daily, the employees were questioned following a complaint by KUSCCO’s legal team concerning a Ksh13 billion loss.

Officers say the ongoing probe could lead to arrests. The investigation comes shortly after CS Oparanya appointed a new board led by Kenya National Police DT Sacco chairman David Mategwa to steer reforms and recover lost funds.

The suspected employees may face multiple charges, including theft, destruction of documents, and violations of the Data Protection Act.

More individuals could be implicated as investigations widen, with authorities suspecting attempts to conceal the massive financial loss affecting Sacco members.

Kenyans to Face Hike in Rice Prices - CS Kagwe Warns

Agriculture Cabinet Secretary Mutahi Kagwe has warned of a looming rice shortage and price surge if a court blocks the planned importation of 500,000 metric tonnes of duty-free rice. He says this move is vital to stabilizing prices and avoiding a food crisis.

In an affidavit, Kagwe argued that halting imports would hurt households and public institutions, worsening the cost-of-living crisis.

As documented by Citizen Digital, Kenya’s annual rice demand is 1.3 million MT, but local production meets only 20%, creating a deficit of over 1 million MT.

Currently, Grade 1 rice retails at Ksh190–220 per kilo, up from Ksh150 last year.

‍Transport CS Announces New Measure for Long-Distance Buses and Trucks

Transport Cabinet Secretary Davis Chirchir has announced new measures to address the sharp rise in road accidents. 

Speaking before the National Assembly’s Transport Committee, he said long-distance trucks and passenger vehicles will be fitted with telematics devices to monitor driver behaviour and vehicle performance.

As reported by Business Daily, He added that inspections will be franchised to private players to improve efficiency in certifying roadworthiness. The ministry is also developing regulations to support this shift from government-only inspections.

To reduce fatigue-related accidents, the government plans to set up rest zones along highways for long-distance drivers. Chirchir noted that these efforts aim to make roads safer and reduce accidents.

Kenyans' Investments in MMFs and Collective Investment Schemes Hit Ksh500B

Assets under management (AUM) for unit trusts and collective investment schemes in Kenya have surpassed the Ksh500 billion mark. By June 2025, the value had risen by 20.1 percent to Ksh596.3 billion, a significant increase from Ksh496.2 billion in March of the same year. This growth highlights a strong and increasing demand for pooled investments in the Kenyan market.

As in the Business Daily, the Capital Markets Authority (CMA) has attributed this expansion to several key factors. One major driver is the intensified marketing efforts by fund managers. These schemes have also benefited from a surge in new entrants and the overall growth of existing Collective Investment Schemes (CIS) funds.

Furthermore, the CMA has actively approved new investment schemes and sub-funds to keep pace with market demand.